Monday, May 6, 2013

More on Bangladeash, Rivoli and institutions

http://ideas.time.com/2013/05/02/viewpoint-on-bangladesh-disaster-its-not-all-about-the-west/

Yesterday I referenced Petro's book, The Travels of a T Shirt. She makes a very key point in this Time article:

Many North American and European human-rights groups and labor activists claim that the Western companies who send their production overseas should be held responsible for this disaster, as their relentless demand for cheaper and faster fashion squeezes powerless Asian suppliers. In this scenario, Western consumers also bear some responsibility by buying the garments that support these poor labor conditions.

But Western sourcing practices are not the main factor here. While Western activists protested outside the Gap headquarters in San Francisco last week (Gap’s spokesperson says the company did not have ties to the collapsed factories), in Bangladesh thousands of garment workers also took to the streets and were met by police spraying rubber bullets and teargas. These Bangladeshi protesters were not directing their outrage at the Western brands or cost-conscious consumers, but at their own failed network of governance.

Thus the importance and challenge of institutions, the thesis of Douglass North's difficult but important book - Understanding the Process of Economic Change.

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